Climateworks Centre has presented a road map for converting industrial zones in Ho Chi Minh City to net-zero industrial parks (NZIP), recommending a phased implementation strategy.
Climateworks has identified common decarbonisation levers that can be applied in the Vietnamese city, including renewable energy and improving energy efficiency.
A phase implementation strategy would begin with pilot projects in high-readiness zones, supported by key performance indicators, emission baselines and public-private investment coordination.
Climateworks, specialists in climate transitions with Monash University in Australia, agreed to work with Ho Chi Minh City in 2024 to establish the net-zero industrial zones. Vietnam is working on aligning its industrial growth with its net-zero commitment by 2050. Net-zero industrial precincts offer a coordinated, place-based decarbonisation approach. They help reduce the cost and risk of new technologies and position Ho Chi Minh City as a net-zero aligned manufacturing hub.
By decarbonising its industrial zones, the city can future-proof its industries against trade regulations while attracting low-carbon investment. Ho Chi Minh has over 17 industrial zones, with varying profiles. These differences mean each zone has differing decarbonisation opportunities. Climateworks suggests implementing four foundational pillars and one cross-cutting enabler to ensure the success of the transition.
There should be coordination and skills to embed cross-sectoral governance mechanisms. The city also needs to build the necessary infrastructure, including renewable electricity and low-carbon transport.
Further, existing industries should be decarbonised through process upgrades. The city should also attract new industries through targeting investment, incentives and policy certainty.
By implementing net-zero industrial precincts, Ho Chi Minh City can demonstrate climate leadership and catalyse Vietnam’s transition to a low-carbon economy.
